| A | B |
|---|
| Standard coverage insurance policy | Protects against all title items found after closing but not those found before closing; covers matters of record |
| Extended coverage policy | Protects against all matters of record as well as problems that are not a matter of record |
| Owner's policy | Protects owner/buyr and heirs while they have interest |
| Indemnity policy for owner | Compensates owner against losses that result from title defects after closing |
| Mortagagee's policy | Protects mortagee/lender based on loan amount |
| When is the title insurance policy paid | Only once- at closing |
| Quiet title suit | Court hearing to determine ownership |
| Escrow | An arrangement where something of value is held by a disinterested third party on behalf of the parties to a transcation until specific conditions have been met |
| Escrow agent or escrow party | Third/disinterested party who holds something of value until transaction completed |
| Settlement statement/closing disclosure core | A detailed accounting of each party's debits and credits |
| Debit to seller | Anything that decreases the amount of money seller takes from closing |
| Credit to seller | Anything that increases the amount of money seller takes from closing |
| Prorated | Divided fairly between the seller and buyer as of the date of settlement (utilities, HOA dues, taxes) |
| Who pays the day of settlement for prorated items | The seller |
| How many days/year or days/month used for prorating | 360 days per year/30 days per month |
| lis pendens | Recorded notice stating that pending lawsuit may affect title to a particular property |
| Title opinion | Rended by attorney after he examines an abstract |
